Tag Archives: behavioral biases

Howard Marks, the chairman of Oaktree Capital Management, told investors in one of his regular missives that there should be room in our investing minds for “good enough” returns, a sweet spot of asset appreciation that feels acceptable but not necessarily risky. Continue reading

In Part 1, we saw how the media noise can distract us from investing. Like Warren Buffett, we should be focused on the long-term prospects of our investments but, the media noise clouds that objective. In Part 2, we’ll take a closer look at how investors overreact to the media noise and discover ways to keep our eye on the prize. Continue reading

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” — Warren Buffett

What’s the difference between you and one of the richest men in the world, besides all that money, of course? Warren Buffett, the multi-billionaire head of holding company Berkshire Hathaway, would explain it simply: He doesn’t buy stocks. He buys businesses. Continue reading

Looking back, the housing debacle seems awfully predictable. In what sane world does an anonymous ranch home in Las Vegas — one of hundreds just like it, stretching to the horizon — command a half-million bucks? Continue reading

Think you can beat the markets? Research shows that you have a bigger hurdle to face: First, you have to beat your own sneaky brain. With a little help from your friends at the Wherewithal blog, you can understand the biases that trip up even the most coolly logical of investors.

Think you can beat the markets? Research shows that you have a bigger hurdle to face: First, you have to beat your own sneaky brain. With a little help from your friends at the Wherewithal blog, you can understand the biases that trip up even the most coolly logical of investors.

In Part One, we covered some of the behavioral biases beginners can make, often without realizing it.

Part Two tackles the “sophomore slip-ups” you find among investors who have been at it a while. Continue reading